HIMALAYA HERBAL

TOOTHPASTE:
CATEGORY AND
BRAND
INVOLVEMENT IN AN
EMERGING MARKET
Team C:
Nabilla Irawan – 040214353009
Umar Rizki Kusumo Widayu – 040214353062
Andrawina Kartika Sari – 040214353053
Jefri Agustiawan Casano Go – 040214353047
Erlita Kusuma Wardani - 040214353034
 ORAL CARE
CATEGORY
• FMCG was broadly split into: Household Care, Personal Care and
TOOTH
Food & Beverages
PASTE
• FMCG market in India projected to be around US$15-18 billion in
WHITEN TOOTH 2010, & expected to grow to US$33 billion by 2015
ING
PRODU
BRUSH • The average Indian consumer spent around 8% of his income on
CT ES
personal care products
ORAL CARE • Growth of the personal care segment can be attributed to:
CATEGORY • Increasing levels of discretionary spending
TOOTH
• Greater attention to personal hygiene
DENTAL
FLOSS
POWD • Increase in the no. of new media channels
ER
• Distribution
• In 2010, the oral care market in India was around US$980 million
MOUTH
WASH  Growth of the toothpaste category was around 9%
Study Results “THE PERCEPTION
OF CONSUMERS REGARDING
THE TOOTHPASTE CATEGORY”
 68% of the Indian consumers who participated in the survey believed
that using the right toothpaste was more important than using the right
toothbrush.
 Most of them believed that oral care was not as important for personal
grooming as hair care or skin care.
 28% of the respondents brushed twice daily.
 68% of the respondents had never visited a dentist & 87% would not
consider visiting a dentist as a preventive measure.
 WHO reported that 98% of the Indian population suffered from oral
health problems.
 Ratio of dentists to patients is just 1 dentist for 10,000 people in urban
areas & 1 for about 0.25 million people in rural areas.
 Conclusion: Significant scope for marketers to enhance the
involvement level associated with the toothpaste category among
consumers.
TOOTHPASTE INDUSTRY : Key Facts
INDUSTRY FACTS
• The toothpaste market in India had a very
low penetration rate of 60%.
• Urban Penetration: 76% Rural Penetration:
40%
• Average consumption of toothpaste in rural
households was significantly lower than in
urban households.
• Per capita consumption of toothpaste in
grams per year: India: 115, China: 255,
United States: 542
COMPETITION
DATA
• Key brands in the Indian Oral Care industry: Colgate-
Palmolive India & Hindustan Unilever Limited
• Colgate was one of the main brands for oral care, with
the category contributing to 96% of Colgate-
Palmolive India’s annual company sales.
• Colgate was the market leader in the toothpaste,
toothbrush & toothpowder categories.
• It led the toothpaste market with a 52% market share.
• Hindustan Unilever was 2nd in the oral care market
with a 25% share in the toothpaste category.
 HIMALAYA HERBAL HEALTHCARE
• One of the key players in the pharmaceutical field for several decades.
• Product Offerings in three segments; Health Supplements, Personal Care Products, and Pain Ointments
• Unique Proposition: The scientific rigor associated with the testing of its herbal offerings
• The company launched Ayurveda based Consumer Products to enter FMCG Market.
• Target Audience :- Young Urban Professional population to create brand awareness. In the early 20th Century it
was brought under the Himalaya umbrella brand for with various products like soaps, shampoos, face washes,
health supplements, baby products, etc.
• By 2010, 40% of Himalaya’s turnover was from consumer products.
• It had several exclusive outlets throughout India, & had shop-in-shop counters in modern retail outlets.
• Himalaya did not advertise as much as other FMCG manufacturers, & brand associations were nurtured by Word
of Mouth.
• To build market share in the highly competitive personal health care market, it begun to advertise its face wash &
toothpaste brands
• Started exporting to several countries
• The brand has a positive perception among consumers
TOOTHPASTE INDUSTRY:
SEGMENTATION
PRODUCT
PRICING CATEGORIZATION
VARIANTS

FRESHNESS
ECONOMY
PASTE
HERBAL
POPULAR
OVERALL HEALTH
GEL
PREMIUM NICHE
Marketing Communication by the
Competitors
Himalaya: Company Profile

Ayurvedic Under the Himalaya’s

Late 90’s

Early 21st Cenury

2010
Concepts: Himalaya turnover:
Young urban umbrella 40% from from
professional brand: consumer
population products
Head towards
being a global
brand
REGARDING HABITS
AND PRACTICES
THROUGH OUT
CATEGORY
● 58% of respondents brush once in a day
● 78% of all respondents never visit a dentist
● Dentist recommendation: – 72% of all respondents do not
take a toothpaste recommended by dentist – 86% of
respondents change their toothpaste on recommendation by
dentist
● 85% of consumers have oral health problems
● 67% of consumers change their toothpaste to solve a
problem
Components of attitude
Attitude
Predisposition to behave
consistently in a favorable or
an unfavorable way
Cognitive
The Knowledge and perceptions
that are acquired by combination
of direct experience with the
attitude object and information
from related sources.
Affective
Consumer’s emotions and
feelings about a particular
product or brand.
SIGNIFICANCE OF
ATTITUDE COMPONENTS
FOR FAMILIAR AND
UNFAMILIAR BRANDS
UNFAMILIAR
FAMILIAR BRAND
For familiar brands Cognition
BRAND
For unfamiliar brands Cognition
mediates the impact of
plays less role and Affective
positive affect while
attitude takes precedence.
negative affect has direct
impact on brand attitude
 PRODU
CT
Himalaya Dental Cream:
• Himalaya’s lead offering in the toothpaste
category
• Natural ingredients
• Priced in the premium tier
• Concept “Indulge like a child, brush like an adult.”
• Outdoor advertising, but relatively smaller
presence in television advertising
Following this, Himalaya went on to launch a range of
herbal prescription-based oral care products — the
HiOra range
 POSITIONI
•
NG
Positioning Target :Urban demography concerned towards oral
healthcare
• Himalaya’s Active Herbs;
Herbal freshness & oral healthcare, premium all natural, healthy,
oral solution with a herbal product expertise.
Solution to oral health problems with a freshness quotient
Brand character - safe , reliable & caring
Awareness of Brand Himalaya & creation of a favourable attitude
Change overall Brand rating: India/World’s Best Herbal
toothpaste recommended by Dentists
 BRAND POSITIONEMOTIONAL BENEFITS
Close Up
Colgate Fresh Energy Gel Colgate MaxFresh

Anchor White
Himalaya Dental
Cream
Anchor Gel
Babool Mint Fresh Pepsodent Colgate
Colgate Dental Cream
Max White
ECONOMIS POPULAR PREMIUM

Colgate Cibaca Dabur Red

Babool

Ajanta
Colgate ActiveSalt Colgate Sensitive
Dabur Meswak
Colgate Total
Colgate Herbal Sensodyne
Promise
Himalaya

FUNTIONAL BENEFITS
 01
CONSUMER
BEHAVIOR AND
THE BUYING
PROCESS
By John T. Gourville &
Michael I. Norton
UNDERSTANDING
HOW CONSUMERS
MAKE DECISIONS
Cognitive vs. High-Involvement
Emotional Decision vs. Low-
01 Making
•
•
Product Type
Context
02 Involvement
•
•
High-involvement purchases
Low-involvement purchases
• Individual Differences

Compensatory vs.
Optimizing vs.
03 Satisficing 04 Noncompensator
y
Cognitive vs.
Emotional Decision
Making
Cognitive  driven by the mind. Decisions entail a deliberative,
information-based processing of relevant product characteristics.
E.g : Buying insurance. People interested in purchasing an insurance policy
tend to weigh factors such as the amount of coverage, the size of any
deductible, and the cost of the policy in an attempt to arrive at an
economically optimal and rational choice

Emotional  driven by the heart and entailing a subjective liking

for one option over another
E.g : When a person living in Hawaii falls in love with a wool-lined leather
bomber jacket—in spite of its impracticality in a warm climate—emotions
are at play. Rationally, purchasing the jacket makes little sense.
Emotionally, however, the jacket may allow the consumer to recapture a
youthful, carefree image of himself, and this feeling may drive the buying
process
Cognitive vs.
Emotional Decision
Making
Combining cognitive and emotional  buying
smartphone.
Cognitive considerations may include the base price of the phone, whether to
purchase the phone by itself or as part of a bundle, the cost of the service
plan, and whether to buy an extended warranty.
Consumers can evaluate various makes and models of smartphones on these
dimensions in an attempt to arrive at the best alternative.
Emotional factors also may play a significant role, however. Such factors as
whether a given make or model is considered “cool” among one’s friends,
whether it comes in the buyer’s favorite color, and whether the phone can be
personalized with a unique case may impact choice.
In the end, both cognition and emotion may prove central to the eventual
choice
Cognitive vs.
Emotional Decision
Making
How marketers try to define whether a person’s buying
process is largely cognitive, emotional, or some combination
of the two. Can start by considering these 3 factors :

Product
Type
Context

Individual Differences
Cognitive
Certain products or product categories lend themselves to cognitive processing, such as those that
serve a utilitarian purpose
e. g : Lawnmowers, garbage disposals, income tax preparation software, house paint).
For such products, buyers tend to objectively evaluate alternatives within these product categories

vs.
based on how well they satisfy that purpose.

For product that serve an ego-expressive or hedonic (pleasure-seeking behavior) purpose often elicit
more emotional processing. Products purchased because the buyers think they say something about
who they are or who they aspire to be encourage more emotional processing, as do those intended to

Emotiona make a statement to peers and social groups.

e. g : Fashion goods, fine wines, boutique coffees, gourmet foods, home décor, artwork

A similar but distinct dimension that influences whether decision making is more likely to be cognitive

l Decision
or emotional is whether a product can be considered more of a search vs. experience goods.

Search goods generally have a wealth of researchable information available, so consumers can learn
nearly everything they need to know about the product before deciding whether to buy.

Making
E.g : Someone in the market for a new washing machine can readily learn about the different models
available by visiting the websites of manufacturers and retailers, reading product reviews in buying
guides, and reviewing testimonials from other buyers on Facebook or other social media sites

Experience goods, consumers can assess the characteristics of experience goods only after
purchasing and using them.
E.g : Someone who buys a new wine vintage can’t be certain that she will enjoy it until she uncorks
the bottle and tastes the wine

Product
Cognitive
vs. Context in which the product or service will be used. For example :

Emotiona Purchasing a pickup truck is driven by cognitive or emotional is defined by

how the buyer will use it. If the buyer wantsto use the truck primarily to haul

l Decision tools and supplies from one job site to another, the purchase will likely be far
more cognitive. If, however, the truck is intended to convey the sense that its

Making
owner is a rugged outdoorsman, there will be a strong emotional component.

Context
Cognitive Marketers must consider the natural tendencies of the individual buyer. The cognition/emotion distinction is
of concern for the marketer primarily because cognitive decision making often is slower, more systematic,
and more exhaustive than emotional decision making.
Cognitive : Consumers seek out a number of options and compare and contrast those options on the

vs.
product characteristics they deem most important.
Emotional : an emotional decision is often quicker, more idiosyncratic, and may entail just a single
alternative. The “I’ll-know-it-when-I-see-it” approach to shopping captures a buying process driven by
emotions.

Emotiona Marketers must consider the natural tendencies of the individual buyer. The cognition/emotion distinction is
of concern for the marketer primarily because cognitive decision making often is slower, more systematic,
and more exhaustive than emotional decision making.

l Decision Adapt selling process : Product placement in stores as a function of the cognitive/emotional distinction
Promotional efforts : advertising that describe the features of an offering, emphasizes a favorable price
may constitute a cognitive appeal. While emotional ones uses evocative imagery, symbols, and situations
that tap into feelings such as happiness, fear, patriotism, or sexual desire

Making
Decision likely to be used by target market : teens often employ more emotional decision making than
adults, which suggests that marketers targeting teenaged customers should focus more on emotional
factors than they would with older customers
 iPod ads targeted to younger consumers, contain virtually no product information and emphasize the
“coolness” of the product.
 Verizon’s “Can You Hear Me Now” television ads deliver a strong cognitive message of cellular
telephone reception, a message that almost assuredly resonates more with widely traveled adults than
locally bound teenagers.

Individual Differences
 High-Involvement vs. Low-Involvement

High-Involvement Purchases
• The buyer is fully engaged
• The consequences of making a good versus a bad choice tend to be significant
and visible
• Effortful decision making
• The use is relatively long
o Cognitive : buying widescreen television
o Emotional : high school prom dress
• Some companies tout their easy-return policies or offer guarantees to reduce
the consumer’s perceived risk of purchase.
• Other companies encourage consumers to “shop around” or provide consumers
with comparisons between the company’s product and that of the competition.
• Some companies might even encourage consumers to make price comparisons.
 High-Involvement vs. Low-Involvement

Low-Involvement Purchases

• Less effort decision making

• Lower risk
• Happen quickly

Strategies for low-involvement purchases may include making the

offering readily available, as when stores place gum, candy, and
magazines in checkout aisles
Optimizing vs. Satisficing
A concept related to involvement, but also distinct from it, is whether the goal of the purchase is to
optimize on choice or simply to “satisfice.”
E. g:
Buying vs renting home.
Consumers buying a home are more likely to try to optimize their decision making—the cost will be far
more significant than if they were renting, and the satisfaction or dissatisfaction from a good or bad
choice will extend much further into the future.  need to research of the strategic area, seek more
advice, will take long time to decide
E. g:
Buying vs renting home.
Contrast that with renting a vacation place for a week. While consumers may still do a great deal of
research—it is still relatively high-involvement decision making—they are more likely to end that search
when they find an alternative that seems to meet their standards, rather than continuing to search every
website for all possible alternatives

As a general rule, the greater the expense (a car, a house, an insurance plan), the more likely
consumers will try to optimize.
 Compensatory vs.
Noncompensatory

Compensatory Decision Making

Consumers consider all of the attributes that are relevant, making trade-offs between those attributes.
e. g : the purchase of earlier version of Apple iPhone.
Even though these consumers may have had concerns about various features of the product, including
faulty WiFi connections, poor battery life, and a high purchase price, they were so delighted with the
usability, sleekness, and novelty of the device that they were willing to buy it.

Noncompensatory Decision Making

Consumers may consider some, but not all, of a product’s attributes, ignor-ing potential tradeoffs
between those attributes.
e. g: Choice of an airline flight represents a noncompensatory decision.
Accrosing country, some travelers may only consider nonstop flights. Even if a flight with a stop is $500
cheaper, the traveler may not consider it because it does not meet the threshold of being a nonstop
flight.
 Compensatory vs.
Noncompensatory

Three factors that drives compensatory versus noncompensatory

decision making :
Size of choice set
If only limited options (such as only three restaurant in town), it wont be difficult to consider all the
alternative attribute. If too many, customers may reduce the number of alternatives under consideration
by establishing some noncompensatory thresholds
Importance of the various attributes
If one attribute dominates all others, no form of compensatory decision making may produce a result
that is superior to a noncompensatory process
Resource availability
If consumers have the time, patience, and access to product information, they may employ
compensatory decision making
 Compensatory
vs.
Noncompensato
ry

Size Of Choice Importance Of

Resource
Set The Various
If only limited options (such as only Availability
three restaurant in town), it wont be If oneAttributes
attribute dominates all If consumers have the time,
difficult to consider all the
alternative attribute. If too many,
others, no form of patience, and access to
customers may reduce the number compensatory decision product information, they
of alternatives under consideration making may produce a may employ compensatory
by establishing some result that is superior to a decision making
noncompensatory thresholds noncompensatory process
Decision Making Process
(DMP)
 Dynamics by
Buyer Type
Across Phases in
the Purchase
Process
 The Consumer Decision Making Unit
(DMU)While consumer decisions vary, they often do
so in a systematic and predictable way

Analyzing DMP & Executing The

Roles Within DMU DMU Marketing Strategy
The key to the The phases and interactions
Buyer, that comprise the consumer
product’s success decision-making process
influencer, gate
is a proactive depend on the kind of
keeper, approver product or service being
customer
offered.

Firms that strive to understand the “how” and

“why” of consumer behavior can greatly increase
the odds of building a sustainable and profitable
business.
 SUPPLEMENTAL
READING
Forces Changing Consumer Behavior and The Buying Process

Social Media
 Place to consult in the pre-
purchase phase
 Social media enables consumers
to broadcast their dissatisfaction
far and wide
Co-Creation & Consumer
Involvement
Smart organizations use co-
creation strategically while at
the same time maintaining
sufficient control
“Conscience” Marketing
Consumers are increasingly likely
to consider in their purchasing
decisions factors such as “green
product” and treatment of
employee.
THE
CONSUMER
DECISION02
JOURNEY
Goal Of Marketing: Reach Customer
Moments That Influence Their Decision
Moment or Touch Points when customer open to influence
The most importance is
integrating

Strategy

Message

Channel
Spending
Management
Marketer Have Been Taught To “Push” Marketing
But For Now Is Quite Different
 Empowered
• Brand Consumers • Active
awareness •Pushed: traditional Loyalists
• Personal advertising, direct
marketing, sponsorship
• Passive
computer and other channel Loyalist
• Pull information helpful
Brand to them
Two Types of
Consideration Loyalty
 Prioritize Some brand are
Objectives much stronger in
and initial-consideration
Spending phase

Tailor
Specific Point
Messaging

Invest in
Consumer
Driven
Marketing

Win the in-

store Battle

Integrating -Intensifies effort to shape the public

all profiles
Customer- -Voice of Customer> public relations,
facing product development, market
Activities research, and data management
THANK YOU